Sykes Core CMC Quiz 1

1) In insurance terms, what is risk?

• It is defined as the probability of an undesirable event to take place.

• It is the realization of that negative potential.

• It is when you lose something like an appointment with a doctor

In insurance terms, what is a loss?

• It is defined as an unrecoverable and usually unanticipated and non-recurring removal of, or decrease in, an asset or resource.

• It is when you think you may the potential to lose something.

• It is when you have fear that something may be wrong.

What is the definition of insurance?

• When you feel secure about everything in your life.

• It is the savings you have in your bank account to pay for any unforeseeable event that may come your way.

• It is a means of protection from financial loss and It is a form of risk management, primarily used to deal against the risk of a contingent or uncertain loss

What is insurable interest?

• It means that someone has interest in getting an insurance policy. They want to feel safer in general.

• It is defined as the reasonable concern of a person to obtain insurance for any individual or property against unforeseen events such as death, losses, etc. This means people ensure things they care about personally.

• It is realizing you need to get insurance since you had a financial loss, and you need to figure out a way to get some of that money back.

• None of these answers is correct.

How does insurance work?

• If a person has an insurance policy that covers them for a loss they have, the insurance company will cover its share of the financial impact caused by this loss. The policyholder may need to pay its share of the transaction too depending on the policy

• When you have a problem, and that problem causes a monetary loss, if you have insurance, they will cover all the expenses you experienced because of this issue.

• When you have an issue that made you lose a lot of money, you get insurance to help you recover from some of the financial loss. You can get insurance after you are affected by a loss.

The amount of money charged by the insurer to the insured for the coverage set forth in the insurance policy is called

• Membership

• Premium

• Insurance

• The bill

You will be much less likely to have to raid your savings or investments, bother family or friends asking for financial help or even worse acquiring bank loans risking yourself to bankruptcy.

• TRUE

• FALSE

John's family has a history of diabetes, and he is concerned he may eventually develop it too. He has seen his father pay a lot of money for his medication, treatment and even a surgery.

This is an example of:

• Risk

• Loss

• Insurance

• Insurable Insterest

Martha had a good friend in high school, and they recently reconnected after 2 decades of not seeing each other.

What is the reason Martha cannot help her friend get insurance?

• Her friend may have too many risks

• There is little to no insurable interest from Martha

• They have not been in touch for a long time.

What is the premium?

• It is the amount you pay for your health insurance every month.

• It is the amount you pay for covered health care services before your insurance plan starts to pay.

• It is a fixed amount you pay for a covered health care service after you have paid your deductible